Not All Income Strategies Are Created Equal
When it comes to investing for income, many investors have traditionally turned to fixed income investments such as certificates of deposit (CDs), Treasury bonds and fixed annuities. Each of these investments offers the advantage of principal and income protection that can be relied upon year in and year out.
Will your strategy deliver what you need?
In making retirement investment choices in today's market, however, there are certain factors you should consider:
- Will your investment provide enough income to meet your current lifestyle needs?
- Will it ensure rising income to help keep up with rising costs over time?
- Does it offer income that's predictable and can last for the rest of your life?
The variable annuity advantage
To help secure lifetime income, many investors are turning to variable annuities for a portion of their retirement portfolio. Take a look at some quick tips to consider as you develop your retirement income plan.
Variable annuities have the potential to deliver more income than traditional fixed income investments along with market participation and income you cannot outlive. The variable annuities from the SunAmerica life companies combine growth potential, risk protection features and innovative lifetime income options (generally available for an additional annual fee). These optional lifetime income benefits can help you generate income that may keep up with rising costs and meet your retirement income needs.
Ask your financial advisor if a variable annuity is right for your long-term retirement income needs.
Please note: Lifetime income can also be guaranteed at no additional cost by annuitizing the variable annuity contract and choosing a lifetime or joint lifetime income option. Unlike optional income benefits that are available for an additional annual fee, annuitization does not guarantee any increase in income or any minimum level of income.
Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Tax-qualified plans, such as an IRA, 401(k), etc., are tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity.
Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained from your financial advisor or by calling 1-800-445-7862. Please read the prospectus carefully before investing.
Variable annuities are issued by American General Life Insurance Company (American General Life), except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Products are marketed by SunAmerica, The Retirement Specialist. All products may not be available in all states. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity. Neither American General Life, US Life, nor their distributors and representatives provide tax, accounting or legal advice. You should contact your own tax advisor or attorney regarding your particular situation.
Distributed by SunAmerica Capital Services, Inc., 21650 Oxnard St., Suite 750, Woodland Hills, CA 91367-4997,
Not FDIC or NCUA/NCUSIF Insured
May Lose Value ● No Bank or Credit Union Guarantee
Not a Deposit ● Not Insured by any Federal Government Agency